Collecting accounts receivable

[DaveKS]

I run a 14 person window cleaning service

We do alot of work for people when they are not home. Our biggest issue when it comes time to getting tough on people who havent paid our invoices, we send them one final letter demanding payment before it is sent to collections.

At this point they either pay, or get upset and make up some sort of excuse and threaten to counter by telling spreading bad news about your company, reporting you to the BBB or some other reaction.

Anyone else out there in the service business run into these kind of problems.

What is your policy for collecting from people
Does it change if they threaten to spread bad news

[Xanifur]

They are in the wrong if they do not pay for the time your took to do the service. What would they say? "This is a bad company because they want me to pay them to clean windows"

Simply turn them over to collections. Any BBB complaints can be settled or erased.

[TranquilSkye]

Are you only taking cash or checks? You may want to consider taking credit cards and indicating that if cash/checks have not been received by xx date then the card will automatically be charged. Or you could just require payment via credit card only.

[riscphree]

Yeah man, your in the clear. You're doing nothing wrong. How long does the average customer wait to pay you? Is it over a couple days or couple weeks?

[Xanifur]

Maybe have them sign a contract that states payment terms and time, and the consequences for non payment before you work?

[Aletheides]

I once read a real estate book about how he collected rents from people that were delinquint.

He would get up nice and early and knock on their doors at 8 in the morning. Try it, I bet it would work.